7 PLACES TO INVEST IN ONTARIO RIGHT NOW

7 PLACES TO INVEST IN ONTARIO RIGHT NOW

1            KITCHENER-WATERLOO

2            TORONTO

3            MISSISSAUGA

4            BARRIE

5            KINGSTON

6            BRAMPTON

7            BURLINGTON 

When preparing this report, the following areas were considered as key fundamentals.  These areas include, but are not limited to:

1.   Employment rate

2.   Population growth

3.   Industries / Employers

4.   Immigration

5.   Transportation / infrastructure

6.   People perception

7.   Geographical location

8.   Household income

Kitchener-Waterloo, Ontario

Kitchener Waterloo is one of Canada’s most dynamic economies.  The average price of a home in Kitchener increased by 6.1% during the first half of 2010 over the same period during 2009.  The presence of large-scale employers, such as Research in Motion, Manulife, Sunlife and Toyota, as well as two universities and a community college has had a direct impact on positive migration.  The largest, the Huron Business Park is home to a number of industries from seat manufacturers to furniture components.  Buying near a profitable major employer usually means security and good wages for employees, which means that the employees are typically good tenants.  There are plans for new infrastructure, connecting Kitchener-Waterloo & Cambridge, making it easier for commuters.  The average vacancy rate in Kitchener moved lower to 2.6% in the Fall of 2010.  It is projected that the vacancy rate in Kitchener will move lower to 2.4% in 2011.

TORONTO

People move into the Toronto downtown core to live and work.  Toronto is the number one city in North America for new condo construction and availability.  Toronto has indeed earned its reputation as the top market for condominiums in North America with over 260 projects planned or already under construction.  You can have confidence that investing in the Toronto market will be a smart investment decision.  Toronto offers safe haven to investor buyers who seek to have their money in a stable environment, lower interest rates and strong economic growth.  However, when investing, keep in mind that brand new condo prices are very high and could be costing you approximately $500-$600 per sq.ft.  On the other hand, an existing condo or townhome may cost you $200 less per sq.ft. than a brand new condo.   Being an investor, you should be looking for a below market value with positive cash flow properties.  With the University of Toronto, Ryerson University and York University being the 3 main campuses in Toronto, rentals are in high demand.

Young people seeking a downtown lifestyle, empty nesters downsizing and people tired of commuting all make Toronto extremely popular and a perfect place for investing. The key is to invest in below market value properties, which would provide equity and appreciation over a period of time.

Mississauga

Mississauga is one of the fastest growing cities in Ontario, Mississauga has thousands of companies, ranging from corporate head offices to small retail businesses.  The city stands as an economic leader in both the Province of Ontario and the country as a whole.

With population of over 700,000 and over $30 billion GDP, Mississauga is the third largest economy in Ontario and sixth largest in Canada.  The city also boasts among the most well educated populations in Canada with an impressive 59% holding either a post-secondary degree or diploma.

Growing population base, community diversity, talented labour force, higher average incomes, technology-driven economy, regional employment centre, post-secondary education and research programs, multi-modal logistics infrastructure, extensive cultural assets, small business and entrepreneurs, evolving health and life sciences sector and diverse finance and insurance sector makes Mississauga one of the best cities to invest in.

The average vacancy rate in Mississauga moved down to 1.8% in October 2010 as compared to 3.0% in 2009.  *

*source: “CMHC Rental Market Report” Fall 2010

BARRIE

Barrie has become a prime destination in Ontario for your family.  Average home prices have increased by 17.2% from September 2009 to September 2010.  Population is expected to rise from 136,000 to 210,000 in 10 years.  Royal Victoria Hospital and Georgian College, which currently has over 8,000 students are expanding and will drive rental demands up.  What drives the market is affordability.  The most typical house in Barrie is about $260,000 to $270,000.  For investors, a 3 bedroom house with 1½ baths could rent from $1,200 to $1,400.  A 3 bedroom townhome would rent for $900 to $1,100.  Barrie’s vacancy rate has decreased to 3.4% in October 2010, as compared to 3.8% in October 2009. *

*source: “CMHC Rental Market Report” Fall 2010

KINGSTON

The cost of a typical suburban home in Kingston averages at approximately $251,624, an increase of approximately 3.6% since September 2009.  If you can get enough bedrooms out of them, they may rent for approximately $450 each.  There is a strong demand for rental units in this area due to Queen’s University and St. Lawrence College, due to little or no construction of new rental units in recent years.

BRAMPTON

Brampton is the 11^th largest city in Canada and 3^rd largest city in the GTA and is among the top 10 most active construction markets in the country.  Brampton is strategically located within the Greater Toronto area – Canada’s economic engine.

With a modern infrastructure, a vibrant workforce, and immediate access to an extensive network of trans-continental highways, seaways and Canada’s Pearson International airport, Brampton is connected to global markets and ready for business challenges of any size.  Downtown development activities are boosting Brampton’s economic and cultural vitality.

Brampton’s population dramatically increased during the last decade and will continue to grow as one of Canada’s most diverse and multicultural cities.

Major companies and businesses currently working in Brampton include an automobile company (Brampton Assembly) which became one of Brampton’s largest employers.  The average vacancy rate in Brampton moved down to 1.9% in October 2010, as compared to 3.3% in October 2009. *

Strong economy and continuous population growth will provide excellent investment opportunities in Brampton.                           *source: “CMHC Rental Market Report” Fall 2010

BURLINGON

Burlington is one of Canada’s fastest growing communities.  Burlington’s economy is not dominated by any single employer or sector.  Burlington’s economic strength is the diversity of its economic base, mainly achieved because of its geography, proximity to large industries in Southern Ontario (Canada’s largest consumer market), its relationship with the Greater Toronto area market and Hamilton and its transportation infrastructure.  The city has a robust economy with potential for future growth.

 

BONUS FEATURE

GREATER TORONTO AREA

Greater Toronto is growing and so does the demand for rentals.  The growing size and level of employment of the 25 to 44 population was a major contributor to the rise in demand for rentals.  Population trends available at the Provincial level for the first half of 2010 indicate that immigration is up 20% compared to the first half of 2009.

Rental Apartment Vacancy Rates Move Down

The rental market in the Greater Toronto Area (GTA) experienced significant change in 2010.  The average vacancy rate for rental apartments fell by a full percentage point to 2.1 percent.  Strong demand for renting this year led to a 30% decline in the number of vacant units.  Several factors worked together to contribute to the sharp reduction in vacancies this year, including a rebound in employment, a high level of immigration and the rising cost of renting units in the condominium market.  Perhaps the most influential underlying force was the marked slowdown in demand for buying homes.*

Disclaimer:  This report is for informational purposes only.  The author, company, employees or any related individuals are not responsible or liable for any damages.  Everyone is expected to do their own due diligence. This information and any materials are not legal, tax, or accounting advice. We suggest you consult your own professional advisors in running your business and working with private lenders.  The information contained herein has been researched in good faith without warranty or liability for any incomplete or misleading information.

*Source: MCHC, Rental Market Survey